$8.4bn investment opportunity in Sri Lanka â€˜green buildingsâ€™
ECONOMYNEXT – The International Finance Corporation (IFC) has said it estimates an investment opportunity of almost $8.4 billion in Sri Lanka’s green buildings sector between 2018 and 2030.
Of this, $6.8 billion will come from the residential sector and $1.6 billion from the commercial sector, the IFC, a member of the World Bank Group, said in a regional study that examines the climate-investment opportunities in south Asian countries.
“Smart cities and green buildings are key pillars in Sri Lanka’s Energy Sector Development Plan to achieve the government’s goal of reducing total energy demand by 10 percent by 2020, through conservation and efficient use of energy,” it said.
In 2014, the construction industry grew by 20 percent on the previous year, with significant contribution from the buildings sector.
“With two-thirds of the annual demand for 50,000–100,000 housing units being met every year, there is an opportunity to scale building construction to clear the backlog demand with green buildings,” the IFC said.
“As 30 percent of the population is expected to be living in cities by 2050439 and the current vacancy rate is less than 5 percent in commercial buildings in the capital of Colombo, the buildings sector will continue to grow in tandem with Sri Lanka’s development, representing a significant opportunity to green the country’s buildings.”
The government has already put in place many of the necessary policies and measures to achieve this objective and enable private investment in this sector, including a green ratings system for buildings and a green labeling system for building materials, as well as 3.4 million square feet of LEED-certified activities.
(COLOMBO, December 6, 2017)